porno Chinese Law | China: What are the main amendments to the The Guidelines on Corporate Accounting promulgated by the Ministry of Finance of the People's Republic of China on 15 February 2006 ("Guidelines")?
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What are the main amendments to the The Guidelines on Corporate Accounting promulgated by the Ministry of Finance of the People's Republic of China on 15 February 2006 ("Guidelines")?

In comparison with the old guidelines, the Guidelines have been amended in four major aspects:

(i) Classification of accounting measures has provided a clear method of calculation, which gives enterprises a better understanding of the measures used in compiling accounting reports and improves the standardization and science of corporate accounting.

(ii) The phrase "accounting table" in chapter 9 is replaced with "accounting report" in chapter 10, which is not merely a wording modification but illustrates the country's stricter approach to accounting supervision. "Accounting report", broadly explained in the Guidelines, includes accounting tables, remarks and any other information and materials to be disclosed in accounting reports. Obviously, this provision facilitates understanding of an enterprise's conditions among users of accounting reports and decision-making among policy-makers.

(iii) Amendments have made the language of the Guidelines more rigorous and include definitions of terminology used in the reports, for example past deals/project, enterprise own/control and expected profit. This standardization has limited enterprises' freedom in compiling their accounting tables while strengthening the Guidelines' effectiveness.

(iv) Last but not least, Article 3 of the Guidelines clarifies its own legal status as a fundamental principle.

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